Trading Curb – Market Circuit Breakers
If you remember Black Monday on October 19, 1987, you recall the market declined 22.68% in one day. This was the largest one-day percentage decline in the DJIA. It took until early 1989 for the market to recover to its previous high set in August 1987. In the...
Jeep Trade Alerts Initial Trial
Dan Harvey, the Iron Condor supertrader, created the popular Weirdor trade several years ago. Jim Riggio, Paul Demers and others modified Dan's Weirdor with different trade management rules. This variation was named the Jeep trade to distinguish it from Dan's Weirdor....
How the U.S. Election Will Effect the Markets
We all know the U.S. Presidential Election is on Tuesday, November 8th, just a few days away. We've seen how the S&P 500 has had nine straight days of losses, which hasn't happened since December 1980. The S&P 500 Let's take a look at the S&P 500 chart:...
Trading Options Around Earnings Releases, Part II
“We are programmed to receive. You can check out any time you like, but you can never leave!” Hotel California, The Eagles In my last blog post, I discussed the nuances of change in implied volatility (IV) leading up to earnings release and following the...
Trading Options Around Earnings Releases, Part I
One of the advantages of an option based approach to trading is the ability to capitalize on trades that have a statistically well-defined high probability of profit. When events occur with predictable regularity, the knowledgeable option trader can effectively...